Ok, I'll try one more time. Did you tell revenue that they are independent properties? If you didn't then you are still claiming the relief incorrectly and you are omitting a material fact that would change their response.I just got a response from Revenue via my enquires online. I am correct and it is covered. They asked about it adjoining the house, does it have own entrance, is it RTB REgistered, Rental Income. All of which I provided so it appears it is covered.
I very much doubt that. If that was the case then anyone living in a semi-D or terraced property could buy next door and rent it out like this. Your friends property is almost definitely a single title and qualifies for the relief unlike your situationIt is exactly the same scenario for a friend who is doing rent a room with adjoining building.
Hey, I'd really appreciate if you could be a little less confrontational the ' I'll try one more time' sounds just a tad off to me, as if you are implying I'm slow off the mark - I know you are trying to prove a point but no need to denigrate another poster.Ok, I'll try one more time. Did you tell revenue that they are independent properties? If you didn't then you are still claiming the relief incorrectly and you are omitting a material fact that would change their response.
If you stick to the "they didn't ask so I didn't answer" approach then you run a major risk of a big tax bill and penalties in the future.
I very much doubt that. If that was the case then anyone living in a semi-D or terraced property could buy next door and rent it out like this. Your friends property is almost definitely a single title and qualifies for the relief unlike your situation
Apologies, that wasn't meant to be confrontational. I just meant that I would not continue to debate the point as you are free to disagree with me.Hey, I'd really appreciate if you could be a little less confrontational the ' I'll try one more time' sounds just a tad off to me
“qualifying residence”, in relation to an individual for a year of assessment, means a residential premises situated in the State which is occupied by the individual as his or her sole or main residence during the year of assessment;
“relevant sums” means all sums arising in respect of the use for the purposes of residential accommodation, of a room or rooms in a qualifying residence and includes sums arising in respect of meals, cleaning, laundry and other similar goods and services which are incidentally supplied in connection with that use;
I would have thought the fact that the properties have separate title deeds would have been a red flag on this. If they have separate deeds, the are two different properties? Or am I missing something? If the flat was mortgaged, did the bank take a lien on the both the flat and the main house or just the flat? Again, if they just took it on the flat, why not on the whole property? It was either a mistake (I've seen banks taking security on a portion of land in error) or they can't claim a lien on the main house.Yes, correct but that is not your situation.
You own one property and are renting out the entire property. It is not your sole or main residence. You live in a separate property that is adjoining but it is distinctly not part of the same property. Both properties have separate titles/deeds so you cannot describe as a self-contained unit just because it was once part of the same building and continues to share a party wall.
It's very clear to me that you are incorrectly claiming this relief and that you have made incorrect assumptions about the self declaration. As @NoRegretsCoyote has pointed out, the burden is on you to accurately declare information that you submit.
The simplest way to distinguish it is whether they can be sold separately, which in your case they can because they are two independent properties. The "attached but separate" that the rent-a-room refers to is access to the property. You and your tenants can have separate entrances and not share any common space but ultimately it is still a single property that could only be sold as one property
It looks like you need a new accountant as well as new FA...
Hard to imagine how properties with two separate deeds, with no connecting door, can be considered a single residential premises.I would have thought the fact that the properties have separate title deeds would have been a red flag on this. If they have separate deeds, the are two different properties?
You should get specialist tax advice by a qualified tax advisor. An accountant can do a tax return but they are not qualified tax advisors and certainly not a specialist in this area. The potential costs to you is too big for the sake of a few grand in fees now.
A few grand to tell you what is already obvious, it really does not seem to qualify for a rent a room scheme. Start with asking revenue and match it to the advise\opinions on this thread, the answer should be clear.
I just got a response from Revenue via my enquires online. I am correct and it is covered. They asked about it adjoining the house, does it have own entrance, is it RTB REgistered, Rental Income. All of which I provided so it appears it is covered.
It is exactly the same scenario for a friend who is doing rent a room with adjoining building.
Sometimes people need to get expert advice to tell them what they already know. In this case, it appears the OP needs someone to tell them what they don't want to believe.A few grand to tell you what is already obvious, it really does not seem to qualify for a rent a room scheme. Start with asking revenue and match it to the advise\opinions on this thread, the answer should be clear.
We don't know what information was given to the Revenue. Were they told that the two properties have separate title deeds. I would suspect not.He has checked with Revenue.
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